10% Withholding Tax on Property Sales

In reference to the letter from R.A. Jobber in Issue 35, we have been through this procedure, so we would like to offer the following information:

You do not have to pay the 10 percent (withholding tax) if you obtain a temporary tax number, Form W-7. It can be obtained at any IRS office. You don't need a lawyer; you take your sales information to a Title Office (we used Title Services in Lakeland, Florida) and providing you have this number, no tax is payable. You will have to submit a (US) tax return for that year, Form 1040 NR. (note: you would have to do this to get your 10% back anyway). You will need details of the cost of purchase, including furniture, etc. if you are selling furnished and the details of the sale. It will take five weeks to get the tax number.